The playbook on Aso is out
Fade the Japanese jawbone.
Finance Minister Taro Aso tried to frighten the market into selling yen earlier. He tried different language today, saying it was important that nervous movements in the FX market do not continue. He also said he was watching the market with tension and will address if needed.
The market has heard it all before and doesn't believe Aso will intervene, at least not at these levels. Maybe below 100.00 intervention is on the table and it's clear that the market will put him to the test.
